Annual Report 2017
Pearson is the world’s learning company, providing a range of products and services to help people across different learning stages make measurable progress in their lives.
Chairman's introduction
"2018 is a pivotal year for Pearson – it is the first in several when Pearson is expected to return to underlying profit growth."
Sidney Taurel, Chairman
Deliver sustainable returns
54.1p
Adjusted earnings per share1
-8%
49.9p
Basic earnings per share2
n/a
4.3%
Return on invested capital (gross basis)
-0.7 percentage points
-4.5%
One year total shareholder return3
17p
Dividend per share
-67%
1. See p36–38 of the annual report for an explanation of these alternative performance measures and p192–195 of the annual report for full reconciliation of the numbers to the equivalent statutory measure and definitions of headline and underlying variances.
2.Equivalent statutory measure.
3.Source: Datastream.
CEO’s strategic overview
"We are optimistic about what the future holds and expect to make further progress in 2018."
John Fallon, Chief Executive
Maintain long-term growth
£4,513m
Sales
-2%
£576m
Adjusted operating profit1
-9%
£451m
Operating profit2
n/a
Manage our cash and balance sheet
£669m
Operating cash flow1
+1%
£462m
Net cash generated from operations2
-11%
£432m
Net debt
+60%
1. See p36–38 of the annual report for an explanation of these alternative performance measures and p192–195 of the annual report for full reconciliation of the numbers to the equivalent statutory measure and definitions of headline and underlying variances.
2. Equivalent statutory measure.
Our strategy
Our goal is to improve access and outcomes in education through our world-class capabilities in educational content and assessment, powered by services and technology.
Non-financial KPIs
Talent & employee engagement
100%
Executives team's achievement of quarterly milestones
89%
% of Senior Leadership Group with development goals
83%
Employees taking at least one course on Pearson’s internal training
programme, PearsonU
Strengthen brand and reputation
59%
Awareness of Pearson among teachers, learners and parents
+2%
89%
Favourability of those aware of Pearson
+1%
Deliver gender diversity
30%
Female board members
No change
30%
Female senior managers7
-2%
61%
Female employees
+1%
7 Two reporting lines from the Chief Executive
Reduce our carbon footprint
104,384
Global greenhouse gas emissions (Metric Tonnes of CO2e)
-17%
Maintain community investment
£7.2m
Target 1% or more of adjusted pre-tax profits
+1.4%
Sustainability is integral to our company strategy. This is no accident as commercial success cannot be separated from ethical and sustainable business practice. It is fundamental to achieving our mission to help people progress in their lives through learning.
